income change

cootambear

post iva agreement, what would happen if my income went up or down sharply?

Charco_2

You speak to your IP about it.

An IVA is NOT some inflexible monster. It's is expected that circumstances will change during five years. Heck it was probably changes in circumstances that caused most people to land up in unmanagable debts.

If your wages go up then it's best to inform your IP - chances are it wont affect your repayments since you're allowed to retain the first 10% anyway... might change at review in your next year though. If your wages go down then your repayments are unlikey to be affordable so you'll need to saoeak to your IP, he has the scope to reduce your payments by up to 15% without having to call a new meeting of your creditors... anything more than 15% and he would be required to vary the proposal properly.

Reductions in your repayments might lead to an extension of your IVA by 12 months if it adversely affect the dividend you originally proposed.

paddyvxr

I'm 12 months clear of my IVA and yes it was tough but it's history now.During the course of the IVA, as I received salary improvements etc, the monthly payments went up. However, when my workplace was put onto reduced time working at the height of the credit crunch, good communication with my IVA supervisor led to my disposable income being reviewed and my monthly payments actually reduced significantly until such time as I was back on full time hours and income when, of course, payments went back up.

The key is to be open and honest with your Supervisor - don't delay if you see a problem on the horizon - deal with it before it gets a chance to hurt you.

Good luck

Jemma1984

Whenever I speak to someone I get told they will have to speak to the creditors to reduce payments.

I wouldn't say I'm struggling to pay mine but I'm having to work a huge distance from home in a job I hate to cover the payments as I know changing jobs will decrease my income and they won't look at my monthly payments until I change jobs but by then if the creditors say no I'm screwed.